Notch 6 Episode 103- Annual Interview with Lionel President Howard Hitchcock – LCCA Tacoma Day 3

I recommend listening to this interview of Lionel President Howard Hitchcock at the LCCA convention. Howard indicates that there was a "restructuring" (letting some people go, which he described as very difficult) at Lionel at the beginning of this year. It had nothing to do with the train line and everything to do with the lack of success of Lionel's major strategic move, led by Mega Tracks, to expand into the larger toy market. (If you listened to the interview with Howard Hitchcock at last year's LCCA convention, you heard him say--at that time--that he envisioned Lionel eventually becoming a toy company with a train division.) As it turned out, while Mega Tracks was well received by the toy industry, it just didn't go in the marketplace. Lionel had, in Howard's words, "ramped up" to support what they hoped would be a successful Mega Tracks business (with, I imagine, other products to follow). When it just didn't go, ownership, which had gone along that far, wanted Lionel to scale back on what was a drag on Lionel's overall business results. Howard also indicates that Lionel will continue to emphasize developing product to expand the "top of the funnel" in the train market, while at the same time continuing to satisfy the high-end hobbyists.

Howard and Derek Thomas also talk about how most of the remaining items in Lionel's archives are being gradually sold by Stout Auctions with care and sensitivity to getting them into the right hands where the items will be appreciated and preserved in a manner befitting their significance.

Cheers!

Keith

I haven't listened yet and realizing that I was never Mega Tracks intended audience, I did feel it wasn't a good product sadly.

I'll listen this evening while cleaning the pool from the weekend storm.

Derek: Nice talking with you this weekend !  I'll be in touch later..

Interesting interview. I've seen these kinds of things in other companies as they struggle with core competencies vs. expansion.

Maybe this regime will be the first to make the change and embrace a 2 Rail High Rail system? Howard said that they are concentrating on the top of the funnel and that this in a new generation. I wholeheartedly agree with that. In fact in my own research I believe that the 3rd rail is a huge detriment to Lionel trying to capture new customers. Whether that means HO is the answer or a new product line like 2 Rail High Rail, my personal opinion is that they aren't going to attract as many new customers with the current 3 rail track system.

I'm very interested to see what they decide to do next.

My thinking..............Lionel has an big opportunity to offer die cast 1:48 scale Tractors and Trailers! Offer NASCAR Tractors and Trailers too! 

Regards, 

Swafford

Hopefully they can "fix" their "40 ft" trailers to an actual scale 40'. If they did, they would dominate the o guage market. No one else other than gloor craft kits and Pecos River Brass has done a 40' o Scale trailer.

Lionel is a for-profit company and not a museum.  Makes sense that they are finally going to sell off their archives at this point.  Might as we well have the revenue.  All of those who played with prewar trains are pretty much gone, and those who played with postwar trains are getting on in years and will be gone in 10-20 years.  The archival materials will only be of interest to toy train historians in the near future.  Most importantly, these materials belong in museums or the hands of collectors who will agree to display and/or write about them, not hidden in a corporate warehouse where they are inaccessible to all.  Better an orderly dissolution of the archives than being sold 10-30 years from now at a bankruptcy/garage sale, which may be the alternative.

MartyE posted:

I haven't listened yet and realizing that I was never Mega Tracks intended audience, I did feel it wasn't a good product sadly.

I'll listen this evening while cleaning the pool from the weekend storm.

Another great episode. I like Howard's straight forward approach. 

Again I didn't think the MT was a good fit but I'm no toy expert and obviously with the awards others thought differently. I certainly like what Howard said around the 55 minute mark. Resembles some place. LOL. 

Interesting interview. Big difference between a "non train guy" as a ceo and a "train guy" like say, Mike Wolf.

I just don't think Lionel is gonna be the next Fisher Price, but the move towards throw away trains and toys sure looks like that's idea....with a fat bottom line,of course.

Hot wheels were great when I was a kid. I may be in the minority, but orange fastrack sounds hideous.

Does anyone here have anything positive to say? Talk about a bunch of old hens...

BTW I think the answer is no........what a shame. 

All all this talk of changing demographics and of Amazon delivery to your door. I wonder if that fella named Sears dealt with that at the beginning of his business. The demise of all retailers should have happened already about 100 years ago now.

i do admire him for being able to stay so positive despite this stuff.

I read positives in this thread... it's not all negative. 

Captaincog posted:

Does anyone here have anything positive to say? Talk about a bunch of old hens...

 

BTW I think the answer is no........what a shame. 

 

i do admire him for being able to stay so positive despite this stuff.

What was he supposed to say? "Sorry about the hollow axles and plastic gears on the Lionchief stuff, it was a"buisness" decision."

I guess we'll have to see what "all the new stuff " is in the next catalog. Its apparent Lionels direction has changed. Marty has stated this many months ago.

Is it negativity? ..........or rather disappointment??

"Interesting interview. Big difference between a "non train guy" as a ceo and a "train guy" like say, Mike Wolf."

Yeah, non-train guys like JL Cowen, AC Gilbert, Dick Maddox, Mort Mann and others seem to often make more innovative and reliable trains .

"Is it negativity? ..........or rather disappointment??"

What are you disappointed about?  Your comments don't mention products you want that Lionel isn't making, just to pick an obvious potential

example.

Personally, I have no problem with plastic gears and LionChief axles, at least with the products I've bought and used.  I'm delighted they are making affordable trains that children can play with, unlike every other vendor, who seem focused on the high end hobbyist (not that there's anything wrong with that).  Lionel trains have always been bought for adults but played with by children.  Lionel is the only company that has a product array that meets the needs of those with lesser budgets and more modest needs.  The future of the hobby, in some ways.

That was a good interview.  My take-away is that Lionel is in good hands. 

I like Mr. Hitchcock's leadership style as exemplified by the messages at the front of Lionel catalogs coming from the Lionel Team, not just the individual who is president.

Yes: Excellent interview, with all the bases covered and being from Detroit, I picked up the Madison Hardware Boxcar.......................

Gary

I know I'm in the minority for caring about this type of thing, but I was pleased to hear they have plans for continuing the Disney series with something in the works to commemorate Mickey Mouse's 90th birthday.

I'm just hoping they can see fit to actually make a nice powerful diesel (or 2! ) to pull all the darn cars they've been making across a few efforts over the last 20 years.  The last stand-alone engine not part of a starter set with any sort of pulling capability was the 18311 EP-5 from the early 90's.

-Dave

Another job well done Derek

RickO posted:

Interesting interview. Big difference between a "non train guy" as a ceo and a "train guy" like say, Mike Wolf.

I just don't think Lionel is gonna be the next Fisher Price, but the move towards throw away trains and toys sure looks like that's idea....with a fat bottom line,of course.

Hot wheels were great when I was a kid. I may be in the minority, but orange fastrack sounds hideous.

 

I was into Hot wheels before I was into trains when I was a kid. I could run those cars on the orange track for hours.  Now orange Fastrack on a whole layout I don't see happening for me but as a stand alone fun set for a former Hot Wheels fan is an "interesting" concept.  Depending on how they do the set I may have to pull the trigger on one if for nothing else nostalgic purposes!    We'll see.